Shares of EBay had their biggest drop ever after the company released its quarterly profit and said 2005 results may be lower than analysts’ estimates.
The company's stocks fell more than 20%, knocking about $12 billion off of EBay’s market value. Today online auctioneer EBay Inc. said its fourth-quarter profit rose 44%. Net income rose to $205.4 million, or 30 cents a share, from $142.5 million, or 21 cents, in the previous year. Excluding the amortization of intangibles and some stock-option expenses, the company earned 33 cents a share. Analysts were expecting 34 cents a share.
Revenue rocketed 44% to $935.8 million from $648.4 million in the previous year. For the total 2005 year the company expects revenue of $4.25 billion to $4.35 billion and EPS of $1.48 to 1.52. Analysts are expecting revenue of $4.37 billion and EPS of $1.61 a share.
Also EBay cut its 2005 net income forecast to $1.41, or 1 cent less than it projected in October.